Citi. Company Green Practices

Transcription

1 399 Park Avenue New York, NY Phone: (800) ent Green Program Contact Pamela Flaherty President & CEO, Foundation and Director, Corporate zenship Locations In over 100 countries: Africa, Asia- Pacific, Central America and Caribbean, Europe, Middle East, North America and South America. Company Green Practices What types of green programs has your company implemented? Globally, s environmental efforts fall under a fundamental commitment to sustainability. has committed to a 10 percent reduction in GHG emissions by 2011 from a 2005 baseline, invested in and financed alternative energy and clean technology, targeted all of its new office buildings to be LEED Silver certified and published over 300 equity research notes in 2007 alone that highlight the relevance of climate change to various sectors of the global economy. In addition, has pledged to commit at least $50 billion over 10 years to addressing climate change, whether it s in the form of investments in renewable energy companies, investments in new technologies to improve efficiency in our own operations, or the development of new products and services that have a beneficial impact on the environment, for example. In 2003, was a developer and founding member of the Equator Principles, a financial industry benchmark for determining, assessing and managing social and environmental risk in project financing. Since their release, the Equator Principles have become a financial industry standard in sustainability. In February 2008, announced the Carbon Principles, a roadmap for banks and U.S. power producers to reduce the regulatory and financial risks associated with greenhouse gas emissions. These new principles were developed over a nine-month period that included input from two other financial institutions, several leading power producers and two major environmental organizations, Environmental Defense Fund and the Natural Resources Defense Council. Visit the Vault Diversity Channel for diversity program profiles of 100s of top employers, insider advice from executives about workplace diversity and more. Go to LIBRARY 105

2 When did the company create and launch these programs? began monitoring and tracking its environmental footprint in made its $50 billion commitment to address climate change in May of Who is accountable for helping your company and its green programs meet its goals? has a dedicated team in corporate citizenship, lead by Director Pam Flaherty, that supports s sustainability initiatives. Yet many of our green programs are initiated by our individual business units. These business units are accountable to their senior management and often set their own goals. In terms of our own operational footprint, our corporate realty services team manages everything from tracking energy use in each of our buildings to designing new office facilities that meet high green building standards. From a risk perspective, has a dedicated team in environmental and social risk management that makes sure deals coming through the bank meet our environmental and social policies. At the highest level, s board of directors public affairs committee annually reviews s environmental and social performance. How do your products/services reflect your green philosophy? As we strive to achieve sustainability in our business operations, so too have we looked to make our existing products and services more environmentally friendly. Here are some examples: Markets & Banking s Markets & Banking group plans to invest in and finance over $31 billion in clean energy and alternative technology over the next 10 years through the expansion of existing activities and the launch of new client services. With committed investments and financings approaching $7.5 billion to date, the markets and banking group sees tremendous opportunities to support companies working in alternative energies such as solar, wind, hydro and geothermal; helping to commercialize energy efficiency ideas; and facilitating investments in aging infrastructure using clean and efficient technologies. has a growing portfolio of equity investments in renewable energy projects, including wind farms in Minnesota and New Mexico. recently advised and financed the $2.15 billion acquisition of a major U.S. wind portfolio by EDP Energias de Portugal that plans to bring over 9,000 MW of new wind development projects to market. also underwrote U.S. Green Bonds for a green/carbon neutral real estate development in Syracuse, N.Y., and will continue developing 106 LIBRARY 2008 Vault.com, Inc.

3 innovative financial products to support clients as they implement climate change initiatives. Since 2006, has also provided advisory services in targeted GHG-intensive sectors to help clients analyze and understand carbon exposure and reduction strategies, building on s industry-leading environmental and social risk management (ESRM) capabilities. Alternative Investments Various businesses at Alternative Investments (CAI) have been active in making environmentally friendly investments. For example, our Sustainable Development Investments (SDI) initiative has invested private equity funds to companies such as Suzlon Wind Energy, a wind turbine manufacturer based in India and Sindicatum Carbon Capital, a developer of projects that reduce GHG emissions globally. Property Investors (CPI) invests in sustainable building projects. Its first such investment was in the Loreto Bay Company, a 5,000-home community in Baja California, Mexico, that is one of the largest sustainable resort communities in North America. Underscoring s continued commitment to the environment, as part of our $50 billion announcement, SDI has projected a ten fold increase in its capital commitment to over $2 billion of private equity over the next ten years in renewable and alternative energy, clean technologies, energy efficiency, carbon credit markets, waste and water management, and sustainable forestry. Similarly, CPI intends to commit $500 million to investments in sustainable building projects over the next 10 years. Global Consumer Group s consumer franchise is offering climate-friendly mortgage and commercial finance products to its clients. In the summer of 2006, Mortgage and Sharp Electronics Corporation, the world s leading producer of solar cells and U.S. subsidiary of Sharp Corporation (Osaka, Japan), signed a joint marketing agreement that enables Sharp s Solar Energy Solutions Group offer home equity loans and lines of credit through Mortgage as an additional financing option for homeowners to purchase and install solar electric systems. The home equity program offers customers an affordable alternative to make this energy-efficient upgrade to their homes. s commercial finance and leasing division, Capital, is more than doubling its commitment to facilitating the reduction of carbon-gas emissions and promoting sustainability by Its Capital Energy Finance Unit has an existing Visit the Vault Diversity Channel for diversity program profiles of 100s of top employers, insider advice from executives about workplace diversity and more. Go to LIBRARY 107

4 portfolio of over $1 billion from underwriting energy efficiency upgrades for universities, local school districts and various municipalities in the United States, allowing clients to amortize the cost savings of improvement over a 15- to 20-year period generally without capital outlays. In additition, members of s popular Thank you points rewards program can redeem points for a range of environmentally responsible rewards. Global Wealth Management Investment Research issued over 300 climate-related notes in A major thematic investment research report by Edward Kerschner, Chief Investment Officer of Investment Research, highlights the investment opportunities and implications of a changing climate. Based on this report, held a two-day conference on June 5 and 6, 2007, that brought senior executives from the corporate, political, regulatory and advisory arenas together with influential global investors to discuss the issue. Smith Barney and Private Bank also advise clients on opportunities in the socially responsible investment arena, including climate-friendly opportunities. Private Bank and the Financial Times have created an Environmental Award for businesses from around the world that have significantly improved their environmental performance. The focus in 2007 was on GHG reductions, and the inaugural awards event was held in London on September 19, How does the company communicate its environmental goals to its employees and its stakeholders? electronically publishes a monthly Sustainability Update that employees have the option of receiving. The newsletter highlights green initiatives from across the company in all regions of the world and provides employees with tips on how they can reduce their environmental impact as well as links to external resources where they can learn more about related news topics and educational sites. In addition, has recently launched two internal environmental web sites, one focused on educating employees about s environmental footprint and sustainability strategies, and the other is devoted to informing employees about environmental initiatives happening across the company and engaging them to pursue similar opportunities and get involved. holds biannual meetings with where representatives from stakeholder organizations are able to have an open dialogue with s senior management. The most recent stakeholder dialogue was February 29, 2008, with over LIBRARY 2008 Vault.com, Inc.

5 different environmental organizations in attendance. In addition to these bi-annual dialogues, engages with stakeholders on a frequent basis. s latest initiative was the announcement of the carbon principles, a set of guidelines for investing in fossil fuel power plants that promotes a focus on increased energy efficiency and the use of renewable sources of energy. The carbon principles were developed in partnership with the Natural Resources Defense Council and Environmental Defense Fund. Our employees are also important stakeholders and an ongoing challenge is to raise awareness internally about s commitment to environmental and social responsibility. In July 2006, in conjunction with the relaunch of the newly revised equator principles, held its first-ever Environmental Awareness Week. This included daily s to staff with stories related to s environmental initiatives, changes to the equator principles and our ESRM Policy, our Sustainable Development Investment Program and actions related to reducing our own internal footprint, as well as a memo and video on the importance of sustainability to our business from our CEO. Environmental Awareness Week has become an annual educational event for our employees. How does your business model promote green? As a financial institution, much of our most recent activity has stemmed from our $50 billion initiative over the next 10 years to address climate change. This companywide goal has led to increased focus on green initiatives and promoting the development of green products and services. Have your company s facilities been certified as eco-friendly work environments? Several of s facilities have been certified as eco-friendly and set out a target in 2007 that all of its new buildings moving forward will be green certified. Most recently, s new office tower in Long Island City, New York, achieved LEED Gold status and its new data center in Germany received the Green Data Center of the Year award for vast improvements in energy efficiency. has also recently been named the 19th-largest purchaser of green energy in the U.S. by the EPA. Visit the Vault Diversity Channel for diversity program profiles of 100s of top employers, insider advice from executives about workplace diversity and more. Go to LIBRARY 109

6 Does your company intentionally do business with suppliers or third-party vendors that have green practices in place or use any preferences or requirements that suppliers or vendors meet key environmental benchmarks? has a set of environmental and human rights criteria for use in RFPs sent out by our Global Procurement unit. Can you share with us measurable results detailing the effectiveness of your green initiatives? continues its efforts to quantify the savings achieved from our green buildings, energy efficiency measures, recycling efforts and other environmental initiatives around the company. For example, recycles over 23,000 tons of paper annually; saving 46,000 tons of harvested wood resources, enough energy to power 69,000 homes for a year, and preventing the release of 18,775,510 kg of CO 2 into our atmosphere. Also could mention the CO 2 reductions as a result of purchasing green power. What efforts have your company undertaken to participate in the public debate on climate change? continues to publicly call for a regulated carbon economy and has posted the following Climate Change Position Statement on its web site: Position Statement on Climate Change February 2007 Climate change poses significant risks to the global economy that require urgent action. The burning of fossil fuels to meet energy needs, loss of forests and other activities are increasing the concentration of greenhouse gases (GHG) and contributing to climate change. Discourse now focuses on the rapidity and severity of change and what must be done. Many countries around the world have enacted regulatory frameworks to guide responses and actions of GHG emitters. group recognizes the importance of these initiatives and is committed to working together with the public and private sectors, and other stakeholders on solutions. group also recognizes this problem requires a global solution one built on frameworks developed by national governments. U.S. national action and leadership are critical elements of a global solution because of the size of the U.S. economy and our emissions and because a global solution is highly unlikely without U.S. action. We believe that the United States must act now to create a national climate change policy to avoid the economic, social and environmental damage that will result if GHG emissions are not reduced. Failing to act in time could have substantial 110 LIBRARY 2008 Vault.com, Inc.

7 consequences for the U.S. and global economies. We support a market-based national policy that reduces GHG emissions, drives innovation and opportunity, brings clarity and certainty to markets, and supports other frameworks. group has committed to a 10 percent reduction in GHG emissions by 2011, invested in and financed alternative energy and clean technology, and published equity research that highlights the relevance of climate change to various sectors of the global economy. group recognizes that establishing a price for carbon dioxide and other greenhouse gases is essential for reflecting the impacts of these emissions. We applaud actions taken by various countries around the world and in the U.S. we applaud the various state and regional climate policy initiatives including new policies in California and the Regional Greenhouse Gas Initiative in the Northeast for their leadership role. State and regional approaches, however, do not adequately address the national GHG footprint and create a patchwork of regulations that may cause distortions in the national economy. Given the necessity to address emissions from all regions of the U.S. and the world, a national legislative framework will be the most effective and economically efficient response for the U.S. Policies to address the climate problem should be environmentally effective, economically efficient and flexible in adapting to new information. A successful policy will be structured to reflect the perspectives of all sectors of the economy. It will encourage new technology development and, at the same time, accelerate the deployment of existing technology and increase energy efficiency. It will reduce emissions from GHG-intensive sectors of the economy and afford companies and consumers time to make changes without costly disruptions or stranding productive assets. It will also include education and outreach to people, with the positive message that a transition to environmentally sustainable energy, coupled with traditions of innovation and entrepreneurship, will foster economic activity and opportunity, generate jobs and protect the environment. In short, the U.S. and other countries can prosper through the effort to solve global climate change. Given the importance of the U.S. in solving this global problem, and as a financial institution with extensive involvement in and knowledge of the U.S. economy and global financial markets, we believe that national legislation in the U.S. should: 1. Pursue a global approach: An integrated global framework to reduce GHG emissions that includes all significant emitting nations should be the ultimate policy goal. Such an integrated global framework is more likely to be realized if the U.S., the largest current and cumulative emitter, develops a national GHG reduction strategy. Visit the Vault Diversity Channel for diversity program profiles of 100s of top employers, insider advice from executives about workplace diversity and more. Go to LIBRARY 111

8 2. Start now: Early and aggressive actions must be taken to avert increasingly costly and irreversible impacts, implement associated solutions and to account for longterm energy sector investment cycles. 3. Recognize early actors: Emission reduction efforts undertaken prior to the enactment of a national legislative framework should be recognized to encourage early action. 4. Integrate GHGs into pricing mechanisms: Policy should leverage market forces to establish price signals for GHGs to ensure that such emissions are reflected in the cost of goods and services. This will create greater certainty, optimize economic efficiency and provide a needed incentive to reduce GHG emissions. 5. Increase investments and create incentives for low-ghg technology: Policy should reward energy efficiency and emissions avoidance, and promote rapid low- GHG product and service research, investment, development and deployment to help drive emission reductions. Policy should provide U.S. companies greater opportunity in the growing global markets for low-ghg solutions and provide parity with other forms of subsidized energy and technology options. The U.S. should increase investments in basic research into alternative energy as well as carbon sequestration. Crafting an effective climate change policy will require Congress to deliberate over alternative approaches to deliver the greatest GHG reductions at the lowest possible cost. group stands ready to provide technical advice and economic insight into the policy options under consideration by our elected officials. Internal Employee Green Initiatives What initiatives has the company encouraged its employees to participate in that help to limit carbon emissions on an operating basis? recycles paper throughout its offices and branches, participates in electronics recycling programs and encourages individual employee efforts to green their activities in the workplace and at home, whether it means holding paperless meetings or hosting webinar conferences instead of traveling. As a financial services firm, s largest direct environmental impact is in its buildings. That s why the partnership between Procurement Services and Realty Services (CRS) the unit charged with managing our facilities worldwide is critical to making our facility construction and management 112 LIBRARY 2008 Vault.com, Inc.

9 practices more environmentally friendly. Procurement for our facilities involves a full array of products including energy, construction materials, fabrics, carpet, furniture and building services. As an integrated team, the two units began working together in 2006 on a cradle-to-cradle approach to procurement, considering the impact of products from their manufacture to recycling or disposal. As s employee population and footprint continues to grow, we are focusing on implementing green building practices in new facilities, as well as retrofitting old sites to be more energy efficient. While our buildings are being transformed, so are the everyday work habits of our people. Asia was the site of a friendly competition called Project Candlelight, which encouraged energy conservation across all buildings in the portfolio. Recognition was provided each quarter to the building operators and employees who made the most progress in reducing their consumption of electricity. Through this program, our facilities in Asia are on track to meet a target of reducing energy usage by 5 percent this year in the larger facilities. Working with Global Action Plan, a charitable organization, a campaign was launched to Switch Off small appliances, lights and PCs as well as to increase recycling and waste reduction at our Riverdale House facility in London. In the United Arab Emirates, employees created a Go Green program with a wide range of initiatives. Using posters and s, and with the endorsement of the Country Officer in the UAE, they promoted switching off equipment whenever feasible, reducing printing, reusing paper and envelopes, and buying environmentally friendly products such as recycled paper and paper cups. They also launched a recycling program for cans, plastic bottles and ink cartridges. CRS installed light sensors and air-conditioning timers to further conserve energy and reduce carbon emissions. Tap sensors were added to sinks and a water consumption awareness campaign was started. How are these initiatives communicated to its employees? These initiatives are largely communicated via notification, internal employee web sites, as well as live engagement sessions. What mechanisms does the company have to allow employees to innovate or provide feedback about ways in which the company can meet its initiatives? encourages feedback through the monthly Sustainability Update newsletter as well as on the internal employee environmental web sites. The Environmental Affairs unit at fields many of these inquiries and responds to employees particular questions on how they can become more involved. Visit the Vault Diversity Channel for diversity program profiles of 100s of top employers, insider advice from executives about workplace diversity and more. Go to LIBRARY 113

10 Do you have numbers or percentages of how many of your employees are involved in eco-focused programs? Because of s vast reach around the globe and the sheer number of employees we have, we do not have an exact number or percentage of employees directly involved in eco-focused programs. However, each of s main business units have dedicated teams working in environmentally/sustainability related areas. Are there any strategies in place to allow consumers of your products or clients to either know about your environment initiatives or even get involved? Publicly available information on some of s main environmental initiatives can be found at: Environmental Development Do you encourage employees and managers to attend/participate in green and/or environmental, programs, courses or workshops outside of your company? Each year sponsors a Global Community Day where we encourage our employees to take part in a variety of volunteer initiatives. On November 17, 2007, more than 60,000 employees, friends and family participated in over 1,000 volunteer activities in more than 600 cities in 100 countries around the world. Local volunteer teams worked across North America, Asia Pacific, Latin America, Europe, the Middle East and Africa on a variety of projects addressing specific community needs including literacy, housing, environmental protection, nutrition and health care. During the 2007 Global Community Day, employees took part in events that included planting trees in a number of locations globally, distributing energy-saving light bulbs and environmentally safe shopping bags in China and conducting river and beach cleanups in Japan. Do you have educational seminars that take place during company hours discussing the importance of Green initiatives? Yes, s seminars/presentations range in size, from global town halls addressing sustainability issues to smaller, more localized presentations on how to save energy on an individual basis within the office. Are there time-sensitive goals in place to ensure measurable progress? If so, could you share with us some examples? has a companywide goal to reduce greenhouse gas emissions by 10 percent from 2005 levels by LIBRARY 2008 Vault.com, Inc.

11 announced that it will direct $50 billion over the next 10 years to address global climate change through investments, financings and related activities to support the commercialization and growth of alternative energy and clean technology among the clients and markets it serves, as well as within its own businesses and operations. Green Career Opportunities Do you promote your eco-friendly workplace when promoting your jobs to prospective candidates? When promoting job opportunities, we make sure to highlight not only s environmental initiatives, but all of s efforts around corporate citizenship. We provide candidates with links to our citizenship web site, where they can find a wealth of information on s corporate social responsibility as well as copies of our annual zenship Report. Going Forward: Plans for Expanding the Environmental Program Does your firm have any plans for future environmental programs? Yes, s commitment to environmental initiatives is ongoing and continuously evolving. At, we focus not on creating one-off environmental programs, but rather work to incorporate sustainability throughout our existing business practices. Do you have a measurable one-/five-/10-year plan? We have committed to a 10 percent reduction in greenhouse gases from 2005 levels by Recognition Please list any awards or recognitions your environmental program(s) have received. Recognized as a top financial institution in climate change disclosure and transparency based on our response to the Carbon Disclosure Project. Named the top U.S. financial institution in corporate governance of climate change issues by Ceres and Risk Metrics. Visit the Vault Diversity Channel for diversity program profiles of 100s of top employers, insider advice from executives about workplace diversity and more. Go to LIBRARY 115

12 Listed on Corporate Responsibility Officer magazine s 100 Best Corporate zens. Listed on the Dow Jones Sustainability Index and received a Bronze Class ranking by SAM Sustainable Asset Management. The Firm Says At, we believe that working to promote environmental and social sustainability is good business practice. As a global corporate citizen, we view sustainability issues from both a risk and an opportunity perspective. We analyze the potential impacts of our business activities and take action to reduce environmental risk and impact. We also look for opportunities to make sustainable investments, and develop products and services with positive environmental and social impacts. 116 LIBRARY 2008 Vault.com, Inc.